Meta (META) Q1 2025 Earnings
How Did META Stock React to Q1 2025 Earnings?
S&P 500 over the same 30 days: +6.74%.
Did META Beat Earnings? Q1 2025 Results
Yes. Meta reported Q1 2025 earnings of $6.43 a share on Apr 30, 2025, beating the $5.22 consensus estimate by 23.1%. Revenue was $42.3B against a $41.4B estimate.
Meta Platforms delivered a strong first quarter, posting revenue of $42.31 billion, up 16.1% year over year, and diluted EPS of $6.43, which came in 23.11% above the $5.22 consensus estimate and reflected a 37% gain from the prior year period. The primary engine behind the beat was Meta's advertising business, which generated $41.39 billion in ad revenue as both impression volume and pricing moved higher, while Family daily active people climbed to 3.43 billion. Operating margin expanded to 41% from 38% a year ago, even as research and development spending accelerated to $12.15 billion to fund the company's intensifying AI push, with CEO Mark Zuckerberg noting that Meta AI has reached nearly 1 billion monthly active users. Looking ahead, Meta guided Q2 2025 revenue of $42.50 billion to $45.50 billion and raised its full-year capital expenditure outlook to $64.00 billion to $72.00 billion, though a European Commission ruling against its subscription-based ad model introduces a regulatory overhang that could weigh on European revenue as early as Q3 2025.
- Ad impressions increased 5% year-over-year
- Average price per ad increased 10% year-over-year
- Family daily active people grew 6% YoY to 3.43 billion
- Revenue on a constant currency basis increased 19% YoY
- Operating margin expanded to 41% from 38% YoY
“We've had a strong start to an important year, our community continues to grow and our business is performing very well.”
Meta CEO, on the earnings call
What Was Meta's Outlook in Q1 2025?
Meta expects Q2 2025 total revenue of $42.5-45.5 billion, with foreign currency providing an approximately 1% tailwind to YoY growth. Full-year 2025 total expenses are now expected to be $113-118 billion, lowered from $114-119 billion. Capital expenditures guidance was raised to $64-72 billion from $60-65 billion, reflecting additional data center investments for AI and higher infrastructure hardware costs. The full-year 2025 tax rate is expected to be 12-15%. The company flagged a significant regulatory risk from the European Commission's DMA ruling against its subscription-for-no-ads model, which could materially impact European business and revenue as early as Q3 2025.
META YoY Financials
| Metric | Q1 2025 | Q1 2024 | Year over year |
|---|---|---|---|
| Revenue | $42.3B | $36.5B | +16.1% |
| Gross Profit | $34.7B | $29.8B | +16.5% |
| Operating Income | $17.6B | $13.8B | +27.0% |
| Net Income | $16.6B | $12.4B | +34.6% |
META Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.